What Drives The Currency Market?
Fundamentals
Fundamentals are the broad grouping of news and information that reflects the macroeconomic and political fortunes of the century whose currencies are traded. Mainly referring to the economic fundamentals.
Fundamentals are:
- Economic Data Reports
- Interest Rates
- Monetary Policy
- International trade flows
- International Investment tools
The Political & Geographical Fundamentals
An essential element of any currencies value is the faith /or confidence the market places in the value of currency. If political events such as an election, war, or scandal, are seen to be undermining the confidence in a nation's leadership, the value of the countries currency maybe negatively affected.
Sometimes TECHNICALS Drive Current Market
Technicals to technical analysis, a form of market analysis Ie. Chart Analysis, trend, analysis and mathematical studies of price behaviour, such as momentum or moving averages, indicators etc.
Technical Analysis is especially important because of the amount of fundamental information hitting the market at any given time.
Hence: Something Else May Be Driving Currencies